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- Apple climbed as much as 4.7% on Tuesday following a Reuters report on Monday afternoon that said the tech giant aimed to produce electric cars by 2024.
- The company wants to compete in the electric-vehicle market with battery innovations to improve vehicle safety, packaging, and range, according to the report.
- The news, published less than an hour before markets closed, lifted Apple to a 1.2% gain on Monday.
- Apple's market cap grew by more than $102 billion at intraday highs.
- Watch Apple trade live here.
Apple gained 4.7% on Tuesday following a Reuters report on Monday that said the iPhone maker planned to produce electric cars by 2024.
The tech giant aims to compete in the rapidly expanding electric-car market with new battery technologies to improve vehicles' safety and range, according to the report. That could "radically" cut down on battery costs, a source familiar with the plans told Reuters.
Apple's market value grew by more than $102 billion at intraday highs.
The report, published less than an hour before markets closed, lifted Apple shares to a 1.2% gain on Monday. Tesla, which would likely serve as Apple's greatest competitor in the automotive sector, extended losses and closed 6.5% lower.
Sources told Reuters that Apple planned to partner with other companies for some vehicle systems. Suppliers of lidar sensors rallied in early trading. Apple developed its own lidar sensors for the iPhone 12 Pro and iPad Pro models.
The report revived discussions of Apple's Project Titan automotive plan after layoffs and a leadership shakeup spurred rumors that the project had died.
The company plans to incorporate a "monocell" design to concentrate battery cells and create more space in battery packs by doing away with various storage pockets, Reuters reported. The layout would allow for denser battery units and a longer range than layouts with more loosely packed cells.
Apple is also experimenting with lithium-iron-phosphate battery chemistry, which could be less likely to overheat than lithium-ion batteries, Reuters reported.
But even Apple's expertise in handling massive supply chains would likely be tested by vehicle production. Tesla spent nearly two decades building cars before turning a steady profit. Apple would need to collaborate with a slew of partners and venture into manufacturing processes not used for its existing hardware.
"If there is one company on the planet that has the resources to do that, it's probably Apple. But at the same time, it's not a cellphone," a person who worked on Project Titan told Reuters.
Apple closed at $128.23 on Monday, up 76% year-to-date. The company has 75 "buy" ratings, 18 "hold" ratings, and three "sell" ratings from analysts.
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